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Trucks at an open pit mine in South Africa. Photo from Adobe Stock

Contrary to Conventional Wisdom, Mining Companies Seem To Pay More Taxes in Lower-Income Countries

With pressures to lower taxes and project-based incentives, and the possibility of kickbacks in exchange for favorable deals, lower-income countries seem like the kind of place where companies get away with paying a smaller share of mining profits to host governments. Yet our open-access paper in the October 2021 issue of World Development shows exactly the opposite: in countries with higher country risk, which tend to be lower-income countries, government “take”—or share of total project returns—is actually higher.